BDK Accounting Is Auditing a New Client, a La Carte

question 61

Essay

BDK Accounting is auditing a new client, A La Carte Catering. BDK could save audit time by using work from A La Carte's internal audit staff. The staff consists of three accountants with public accounting experience and certification. A La Carte requires every member of its accounting department to spend two out of every five years on the internal audit staff. Then, the employee is rotated back into the accounting department for a couple of years. What factors should BDK consider when determining whether or not it can use work of the internal audit staff? In this case, what should BDK decide?

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Definitions:

Independent Variable

Factors in an experiment that are deliberately changed to test their impact on outcomes, observed through changes in the dependent variable.

Mean Square Error

A metric used to measure the average of the squares of the errors, indicating the discrepancy between estimated and actual values.

Dependent Variable

In a study or experiment, this is the variable anticipated to vary as a result of alterations in the independent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.